Asian stock markets traded mostly higher on Thursday after Wall Street advanced following the Federal Reserve's statement affirming that interest rates would remain unchanged as the economy is still sturdy.

Japanese markets were closed due to a public holiday. Hong Kong's Hang Seng index dropped by 1.3%, and the Shanghai Composite index in China dipped by 0.1%. Conversely, South Korea's Kospi rose by 0.5% and Australia's S&P/ASX 200 climbed by 1.2%. Taiwan's Taiex surged by 1.8%, while Bangkok's SET gained 0.2%.

On Wednesday, Wall Street also saw gains as bond yields eased. Tumbling Treasury rates can lead investors to shift towards higher-priced stocks. The S&P 500 increased by 1.1%, the Dow Jones Industrial Average gained 0.9%, and the Nasdaq composite rose by 1.4%.

The recent market volatility is attributed to uncertainties surrounding President Donald Trump's policy announcements on tariffs and economic reforms. Despite growing pessimism, Fed Chair Jerome Powell noted positive economic indicators like low unemployment, suggesting the economy's fundamental strength.

The Federal Reserve has maintained interest rates this year, anticipating two rate cuts by year-end. However, concerns about weak economic growth and inflation are pervasive, reflecting the prevailing uncertainty. Powell dismissed fears of stagflation akin to the 1970s, stating that current economic conditions do not warrant such comparisons.